Return on Assets – how it can be improved.

Return on Assets – how it can be improved.
 By improving the profits.
 Following are the major components of the Assets side of Bank‟s Balance Sheet.
 Fixed Assets. Furniture. Investments. Loans and Advances. Cash in hand and Balance with Banks (including RBI).
Other Sundry Assets.
 We have to minimize out spending on Fixed Assets and Furniture and maximise their utilization.
 The return on Investments are market driven and we do not have much control on them. However they have to be
cleverly deployed to maximise the returns with minimum risk.
 We should maintain the quality of our Loans and Advances and also maintain good Net Interest Income.
 We should not keep idle cash or bank balance which is a drain on our profits.
 Other Sundry Assets to be closely monitored so as to avoid long outstanding entries.